Burger King faced challenges in the Philippine fast food market due to lower brand awareness and a lack of visibility compared to competitors like Jollibee and McDonald's. Market research including a survey and focus group found that while burgers and pizzas were the most popular fast food items, Jollibee had the highest brand recall. Factors like food quality, price, and service were most important to customers when choosing a restaurant. The research also revealed opportunities for Burger King to improve its menu options and add family-friendly items and services.

1. 1

2. Florida based Burger King Holdings Ltd operated and franchised fast
food hamburger restaurants through its subsidiary , Burger King
Corporation. It ran 11300 restaurants in 69 countries and was
the second largest hamburger restaurant chain in the world.
In philippines , PERF restaurants Inc was the franchise holder of
Burger King and operated out of 23 locations wh were located
in the National Capital Region. In philippines , it was facing a
tough competition with the leading home-grown brands , Jollibee
and the world’s largest brand , Mc Donald’s. Although burgers,
chicken and fish, sides and desserts were offered, the
company’s unique selling proposition was its range of
Whoppers. Burger King’s brand awareness in the philippines
was pretty low. The company’s current communication efforts
had not been able to increase brand awareness. Mr. Kim Tan,
vice president, Marketing, had to take decision about the
value proposition, communication strategy of the company
amongst host of other marketing decisions, within next 3-4 2

3. Problems
Communicating Burger King’s
value proposition to its target
market was a major problem
for the company despite
having a list of strengths such
as superior products , higher
quality , great ambience etc.
The company’s current
communication efforts had not
been able to increase brand
awareness.
Reasons
The company had lower visibility
due to less no. of stores. It
also had low accessibility due
to the same reason, as pointed
out in the focus group
discussion.
The company’s offerings did not
include kid meals, chicken and
non-burger main items. Rice
was not served as aside option
to buy which was served at
Jollibee and McDonalds. In
philippines it was common to
offer rice along with the food.
There was also a negative
perception that Burger King
didn’t cater to the local Filipino
taste. As reported in the FGD,
many respondents didn’t
appreciate the absence 3

4.  Fast food had become one of the fastest
growing industries in metro manila due to :
o Rapid urbanisation
o Increase in disposable income of the population
o Growing preference of Filipinos for quick-value
meals in a clean and cool environment

5.  Major players in fast food market of metro
manila :
 Jollibee
 Mcdonalds
 Burger king
 Kfc
 Wendy’s
 Chow king
 Greenwich

6.  Some smaller niche players are also there,
such as –
Brother burger
Max’s
Goldilocks
Tokyo-Tokyo
Hotshots

7. OUR BRAND COMPETITORS

8.  Operating for 32+ years
 600 domestic outlets ( key strength)
 30 international outlets
 Expanded market through acquisition of
other fast food restaurants and bakeries
 Products :
American – burgers and fried chicken
Filipino – palabok and lumpia
 Emotional attachment from filipinos –
“langhap sarap” meaning “savoring
happiness”

9.  Target market- filipino family in home
country and abroad
 Committed to community programs such as “
maAga ang Pasko”, a donation drive of used
clothes and toys that were annually
distributed to street children and
orphanages.

10.  First opened in 1981
 Multi-billion peso company with 250 outlets in
Philippines.
 First one to Operates 24/7
 Products:
 Burgers
 Cheeseburgers
 Burger mcdo
 Big mac
 Quarter pounder w/cheese
 Chicken
 Chicken mcdo
 McChicken sandwich
 Fries
 dessert

11.  Target market- Filipino family with a taste
for American fast food.
 Strong marketing campaign
 Received multiple awards for “lolo”
campaign in 2003
 Key strength – ability to market itself as the
recognised global leader in hamburger chains
 Quite visible with a good choice of location
and appealing advertisements
 Limitation – its non- Filipino taste

12.  Has been in philippines for more than 2
decades.
 Most popular product – KFC original recipe
fried chicken
 Major strength – brand recall when it came
to fried chicken
 Major weakness – absence of legitimate
hamburger in the burger segment
 However, they were attempting to cater to a
new crowd of chicken burger lovers with
their line of zingers and chicken fillet
sandwiches .

13.  Opened first outlet in Philippines in 1983
 31 outlets in the country
 Target market- similar to Jollibee and
McDonalds but also those who prefer
healthier fast food
 Products-
American fast food (burgers and fries)
Unique salad bar ( key strength)
The baked potato ( unique item)

14.  Key weaknesses – lack of visibilty in terms of
No. of outlets
Marketing promotion

15.  Pizza - among the top fast food items
 Pizza parlour industry second to the burger
industry
 Notable franchises-
Shakey’s
Pizza hut
Greenwich
 Only comparable to burger king in
terms of price as others commanded a higher
average purchase price
Acquired by to
enter into pizza segment

16.  Major weakness –
always located near a jollibee or chow king
outlet
Did not cater to the burger segment ( absence of
hamburger on their menu)

17.  New fast food restaurants that had burger as
their main food such as and
 Too few outlets at the moment , even if they
are popular
 These players are in premium burger
segment, serving high end quality burgers at
premium pricing .
 Major weakness –
Lack of number in outlets
Weak visibility

18. Opened in the philippines in
1999
13 outlets in total today

19. 15 outlets in philippines
8 in indonesia
1 in singapore

20. BURGER
KING
JOLLIBEE MCDONALD’S WENDY’S
AGE IN
THE
PHILIPPINES
11 years 33 years 27 years 25 years
# OF
OUTLETS
(PHILIPPINES) 23 600 250 40
MAJOR
PRODUCT/S
Burgers,
fries,
dessert
Burgers, local
offerings,
chicken, fries
, and dessert
Burgers,
chicken,
fries, and
dessert
Burgers,
salads,
desserts,
and baked
potato

21. POLITICAL FACTORS
 Govt proposed policy- Allowing almost 100% foreign
ownership in all sectors
 Increased competitiion
 More investment like increase in franchises
ECONOMIC FACTORS
 Increased Remittance
 In 2007 overseas remittances was 13.2% over the 2006
remittances
 Services boom and the resulting increase in net disposable
income
 Service output increased by 8.7% from last year
 Increase in demand and consumption of fast food

22. SOCIAL FACTORS
 Changing lifestyle and perception
 Increased foreigners and expats due to rise in service economy-
imbibing latest fashion, technologies, and world class taste and
preferences
 Increased educated and health conscious people
 Increase in no. of working women
 Average increase of 6.7% from 2006 to 2007
 It has increased from 13,394,000 to 14,286,000 in 2007
TECHNOLOGICAL FACTORS
 Use of automated vertical grills, self service kiosks
,automated french fries system
 Increased interactions with customers &reduced labour cost
POSSIBLE SUCCESS FACTORS
Product, pricing, advertising, efficient service, breakfast
menus, value preposition, add on services, etc

23. Market Research Findings
A UAI Survey along with a focus group discussion was
conducted by a team of Asian Institute of Management and
following was a summary of the findings of the survey and
group discussions.
• Pizzas and Burgers were the most preferred fast food
items:-
The survey showed that an equal percentage (of
28.9%) of people preferred pizzas and burgers to other fast food items.
Following figure depicts the percentage split among the respondents on
the most preferred food items. Pizzas
Burgers
Pastas
Sandwiches
Salads
Others

24.  Jollibee had the highest brand recall amongst the fast food
brands:-
Advertising forms an important component of fast food operations.
The items were generally bought on impulse and a well-advertised brand
easily gained recognition. Almost half of the respondents recalled Jollibee
when asked about fast food and only 2.2% recalled Burger King.
Brand Recall
Mcdonald's
Jollibee
Burger King
Others

25. REASONS FOR THE LESSER BRAND RECALL AND BURGER KING BEING A
FOLLOWER.
 Lesser visibility and accessibility of Burger King.
 Although higher-end (costly) burgers were good, the lower-end burgers
were considered below-par compared to competitors such as Jollibee and
McDonalds.
 Burger King did not have much variety in the kids’ food.
 Food quality, price and service were the primary factors taken
into consideration before choosing a restaurant:-
There were various factors that people looked for, while choosing a fast
food restaurant. The most important factor in decision making was the food quality,
service and price. Below graph shows things people look for in a restaurant (on scale
of 5)
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Food Quality Price Location
Convenience
Promotions
Offered
Ambience Service

26.  Jollibee led in all the main factors like quality, value for money,
menu and the service provided:-
In the average ranking of brands on the basis of
quality, value for money, menu and service it was concluded that Jollibee
lead in all factors. Following cluster graph shows the average ranking of
brands on the aforementioned factors.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Quality Value for
Money
Menu Service
McDonald's
Jollibee
KFC
Burger King
Wendy's

27.  Jollibee and McDonald’s were neck-to-neck in convenience,
ambience and cleanliness:-
In the average ranking of brands on the basis of
convenience, ambience and cleanliness, it was found that Jollibee and
McDonalds were neck-to-neck.
 Soft drinks and Fries were the two main supplementary food
items that people liked to have with their fast food meals:-
Out of a list of sides, people preferred soft
drinks and fries along with their fast food meals. The figure below showed
the percentage of people who like to have other things with their meal at a
fast food restaurant.
0
10
20
30
40
50
60
70
80
90
Soft Drinks Ice Cream Fries Desserts Soup/Salad Ice Tea

28. 44
64
70
3 3 2 2
0
10
20
30
40
50
60
70
80
0ther Add On Services That People Desire At A Fast
Food Restaurant
Add On…

29. 71
26
47
17
0
10
20
30
40
50
60
70
80
FOOD AMBIENCE ADDITIONAL
SERVICES
VALUE FOR
MONEY
Attributes People Like About Burger King

30. 18
65 62
4 3
0
10
20
30
40
50
60
70
What are the services/changes people like to be
offered at burger king
Services/Changes
Large variety and cheaper prices were what people
want from Burger king.

31. SWOT ANALYSIS
 STRENGTHS
◦ Food quality – rated 3.99 on a scale of 5
, better than almost all other fast food
joints
◦ Brand name- “burger king” is a brand
name associated with burger
◦ Authentic American taste- value
differentiator that could be leveraged in
attracting the trendy and westernised
Filipino youth

32.  WEAKNESSES
◦ Limited number of outlets- regular
customers of burger king had to switch to
other fast food joints, if they did not find
an outlet in vicinity
◦ Limited choice in menu- should offer
varied type of products like its competitors
◦ Not suited to Filipino taste – had a bit
more American flavour to its products
◦ Higher prices- jollibee and mcdonalds
had cheaper products

33. OPPORTUNITIES
Spending on fast food is increasing
Urbanization
Increase in no. of working women
Increase in the no. of people who came to fast food joints for different
services like phone charging and mobile phones
THREATS
Increase In concern about health
Increase in no. of outlets of other fast food chains
CORE COMPETENCIES
Excellent supply chain, good service standards, good quality products,
innovative side orders, excellent ambience, tech-savvy outlets
POINT OF DIFFERENTIATION
AMERICAN FLAVOR AND AMERICAN FACTOR IN PHILIPPINES
Burger kings strong association with American flavor and the authenticity
maintained was ,hence, a “POINT OF DIFFERENTIATION”
TARGET MARKET
Teenagers and young adults up to the age of 35, studying or working from
metro manilla.

34. THE 4 Ps
4 Ps
product
price
place
promotion

35. PRODUCT
Burgers
•Beef
•Chicken
•Fish
Side
orders
•French fries
•Onion rings
•Criss-crossed French
fries
Cold
and hot
drinks
•Sodas
•Hot chocolate
•Lemonade
•Ice-tea
•Hot coffee
Desserts
•Hershey’s chocolate
pastries
•Ice creams
•Sundaes
•fudge
Highly
preferred
and
unique

36.  Burger king also introduced breakfast menu
 New offering – burger shots (many small
sized burgers in a single order )
 Apart from burgers, the whopper sub brand
was a unique sub brand associated with
burger king
 Burger king also offered various chicken
sandwiches which were highly sold
 Most of the desserts were supplied from
other major brands .

37. PRICE
 Expensive compared to all its competitors
Burger starting from 50 PHP
Price could go up to 250 PHP
Average price of a meal – 175 PHP

38. PLACE
 Sold its products only through its 23 outlets in
metro manila.
 No home delivery on phone
 Options with consumers- eat here or take
away
 Most outlets located in malls with high
footfall, premium malls which attracted A
and B income segment customers ( richest
customers)

39. PROMOTION
Constraints
• Spent lesser than McD and Jollibee
due to the sheer scales that they
currently command in Philippines.
• Outlet visibility was a natural form
of increasing brand awareness –
difficult with only 23 outlets

40.  Keeping the constraints in mind, company
advertised through following modes :
 Direct mailers sent to customers via mails and
network marketing used
 Communication through facebook
 Team sponsorship - Had its logo printed on jersey
of a famous local basketball team
 Advertisements in newspaper and magazines
 Small banners and kiosks an malls to show
direction to outlet

41.  Discount coupons ( up to 100% discount coupons
used ) – coupons awarded to winners of events
sponsored by burger king
 Communication messages used
 Common message rode on theWHOOPER – “
Angry whooper , and it’s cool to be angry”
 Other messages such as photographs of
basketball players wearing burger king jerseys
were used
 Most messages showed a meal – a sumptuous
burger with coke, fries and dessert

42. ANNEXURE
 KEY RESPONSES:
◦ Burgers will be the dominant fast food
preferred by people
◦ People thought of big king size burger when
thinking of burger king
◦ Fried chicken is an important offering
◦ Visibility and accessibility of burger king are
low.
◦ Low-end burgers were considered as “not
worth it”

43. ◦ High-end burgers were considered “worth it”
◦ Burger king has maintained the American
taste, not adapted to Filipino tastes.
◦ Jollibee offers better toys for kids
◦ Kid’s meals offered weren’t good enough
◦ Credit card payment available at burger king
was appreciated
◦ Cell phone charging facility – major
attraction
◦ Burgers preferred to be served with chips

44. ◦ Home delivery service which is not available is
very important
◦ Filipinos like Filipino breakfast – should
introduce breakfast with Filipino flavour
◦ Free internet – major attraction
◦ Burger king’s old policy ( not existing now) of
unlimited drinks was highly appreciated and
still remembered – offering be started again
◦ Burger king should increase its visibility –
currently low

45. ◦ Suggestions given were for the introduction of
drinks other than aerated drinks.

46. QUESTIONS
1. Despite having strengths such as superior
products, higher quality, great ambience,
etc., burger king’s brand awareness in the
Philippines was pretty low. Analyze the
situation that may help Mr. KimTan,Vice
president , Marketing of burger kings,
Philippines. What is the role of local culture
in this context ?

47. 2. ShouldTan retain the main point of
differentiation, its American flavour as its
core equity? SuggestTan on continuation of
current positioning and communication of
its value proposition.